Managerial Acct: 240

PLEASE ONLY ATTEMPT QUESTION IF YOU ARE WILLING TO ANSWER ALL PROBLEMS! THANK YOU!

• 111What is meant by the term decentralization?

• 112What benefits result from decentralization?

• 113Distinguish between a cost center, a profit center, and an investment center.

• 114What is meant by the terms margin and turnover in ROI calculations?

• 115What is meant by residual income?

• 116In what way can the use of ROI as a performance measure for investment centers lead to bad decisions? How does the residual income approach overcome this problem?

• 117What is the difference between delivery cycle time and throughput time? What four elements make up throughput time? What elements of throughput time are value-added and what elements are nonvalue-added?

• 118What does a manufacturing cycle efficiency (MCE) of less than 1 mean? How would you interpret an MCE of 0.40?

• 119Why do the measures used in a balanced scorecard differ from company to company?

• 1110Why does the balanced scorecard include financial performance measures as well as measures of how well internal business processes are doing?